You’ve seen them: those massive, empty retail shells in the middle of busy shopping plazas. They sit vacant for years, gathering dust while you drive an extra ten minutes to find a carton of milk that doesn't cost a fortune. It’s easy to blame "the economy," but in Manitoba, the government is pointing the finger at something much more specific. They’re calling out Sobeys for using legal "property controls" to keep competition away and prices high.
On April 30, 2026, Premier Wab Kinew made it official. The province is taking Sobeys to the Municipal Board, challenging the restrictive contracts that have turned prime real estate into "dead zones" for grocery competition. It’s a bold move, and honestly, it’s about time.
The Secret Clauses Keeping Your Grocery Bill High
If you’ve never heard of a "restrictive covenant," you aren't alone. These are basically legal handcuffs attached to a piece of land. In the grocery world, they work like this: a big chain like Sobeys closes a store or moves down the street. Before they leave, they slap a clause on the property title that says, "No other grocery store can ever open here."
Sometimes these clauses don’t just apply to the building—they cover a radius around the store. In Steinbach, the province found a Sobeys restriction that covers an entire swath of land across the street and even parts of a nearby farmer's field. These aren't just for a year or two, either. Some of these deals don't expire until the 2040s or even the 2060s.
The Four Locations in the Crosshairs
The Manitoba government isn't just talking in generalities. They’ve picked four specific fight-starters to lead the charge. These aren't random; they’re high-traffic areas where residents have been complaining about lack of choice for years.
- 915 Leila Ave, Winnipeg: This one is personal for North Winnipeg. The old Safeway (owned by Sobeys) at McPhillips and Leila has been a point of contention since it closed in 2014. For over a decade, that area has been a grocery desert because of these controls.
- 50 Sage Creek Blvd, Winnipeg: A growing community that desperately needs more than one option to keep prices honest.
- 178 Provincial Trunk Highway 12, Steinbach: As mentioned, the "land grab" style of the covenant here is particularly aggressive, affecting land that isn't even developed yet.
- 1645 18th St, Brandon: Sobeys moved out in 2017 but reportedly signed a lease just to keep the building empty so no one else could move in.
Why This Matters to Your Wallet
You might wonder why a lawyer's contract on a building in Brandon affects what you pay for eggs in Winnipeg. It’s basic math. When a company can legally prevent a competitor like Loblaws, Walmart, or an independent grocer from opening next door, they don't have to fight for your business.
They don't have to lower prices. They don't have to offer better sales. They just have to be the only option within a five-minute drive.
The Competition Bureau of Canada has been screaming about this for years. They’ve noted that these property controls are a massive barrier to entry. Every other major player in Manitoba dropped their property controls when the Property Controls for Grocery Stores and Supermarkets Act passed in June 2025. Sobeys is the lone holdout, clinging to 43 remaining controls.
The Legal Hammer: Bill 31
Last year, the province passed legislation that essentially said, "New property controls are illegal, and old ones are on thin or non-existent ice." The law gave companies 180 days to register their old covenants. If they didn't, they vanished.
Sobeys registered theirs. Now, the government is using the second half of that law: the power to bring those registered interests before the Municipal Board. The Board has the authority to strike them down if they’re found to be "contrary to the public interest."
It’s hard to argue that keeping a building empty and food prices high is in the public interest.
What Happens Next?
The Premier expects the Municipal Board to start making decisions in about six to eight weeks. If the province wins, those "no-grocery" clauses will be wiped off the books.
This doesn't mean a new store will pop up overnight. It does mean the "For Lease" sign on those empty buildings finally becomes a real opportunity for competition. For the first time in decades, a local entrepreneur or a rival chain could actually sign a lease and start selling groceries where Sobeys used to be.
If you’re a Manitoban, keep an eye on those vacant storefronts. The legal walls are starting to crumble. If you live near the targeted sites in Winnipeg, Brandon, or Steinbach, you might finally get the grocery competition you've been asking for. Stay tuned to the Municipal Board’s public hearings—this is where the real fight for your grocery budget is happening.
